Property

High-end apartments booming in HCMC

Released at: 15:39, 19/10/2015

Launches conducted and new projects on way throughout the southern city.

by Thu Hoang

An Gia Investment recently launched its luxury apartment project, An Gia Skyline, in Ho Chi Minh City’s District 7 - its first project conducted with its partner, Japan’s Creed Group, at 50/50 investment. Creed Group is spending VND500 billion ($22.2 million) on the project as part of the investment fund’s pledge to pour $200 million into the local real estate company.

“With the market knowledge and enthusiasm of An Gia Investment and Creed Group’s financial strength, Angia Skyline is expected to meet the maximum needs of luxury customers in South Saigon,” said Mr. Nguyen Ba Sang, Chairman of An Gia Investment.

Meanwhile, the Phuc Khang Corporation also introduced its luxury apartment project, Diamond Lotus, which has total capital of more than VND1.2 trillion ($53.4 million) and sits on 1.68 ha in District 8. According to Ms. Luu Thi Thanh Mau, CEO of Phuc Khang, this is the first luxury apartment for sale project developed by the company, as in the past it has focused on developing green urban area projects.

Novaland Group has also started work on seven luxury housing projects in Ho Chi Minh City: Sunrise Cityview in District 7, Sunrise Riverside in Nha Be district, Golden Mansion, Orchard Parkview, and Newton Residence in Phu Nhuan district, Park Avenue in District 11, and Duxton Residence in Tan Binh district.

An estimated 7,862 units were sold in Ho Chi Minh City during the third quarter. Continuing the trend from the previous quarter, high-end apartments still accounted for an increasing share of those sold, according to CBRE’s Ho Chi Minh City Quarter 3 report. In the first nine months high-end apartment sales accounted for 35 per cent, up from the 32 per cent reported at the end of 2014. The primary price in VND is on the rise in most segments, especially in high-end projects, by an average of 5.5 per cent year-on-year. “However, cautiously looking at the sales performance of new launches in the third quarter, the absorption rate of 35.1 per cent was partly due to the fact that buyers lack confidence in suspended developments,” said Ms. Dung Duong, Director of CBRE Vietnam’s Research and Consulting.

According to insiders, high-end apartments will be the most sought after by investors, especially foreign investors, due to a profit return of 6-8 per cent.

Three months after new regulations came into effect there has been some initial interest from foreign buyers, according to Mr. Marc Townsend, Managing Director of CBRE Vietnam. “There has not been a notable increase in sales to foreigners to date as many potential buyers are waiting for more guidance and implementation progress,” he added. “Being an agent targeting this group of buyers, we have observed that professionalism, language proficiency, and ease of credit card payment are some of the key issues once foreign buyers are involved.”